SHG uses this space to post the thoughts of people we consider to be experts in their respective fields. Some of these posts are directly from out SlateHouse Group Property Management team while others are from our network of real estate partners. Please comment on any post and if you have a question, the author will respond. If you have a request for a blog post topic please email us at info@slatehousegroup.com.

1- Nearly Risk Free- When you invest in real estate you are buying a physical property. Unlike the stock market you have something tangible. 10 years from now you know your property will be worth something to someone. The same cannot be said for a stock. Historically, real estate doubles in value every 10-20 years.

3- Hands Off- Use a property management company and you don’t have to get your hands dirty. Let them deal with all of the issues. You can sit back and collect a check each month.

4- Diversify - You hear this all the time right? It’s true. Don’t invest all of your money into the same type of investment. It protects you from fluctuations in a specific market. Personally, we even diversify within real estate. We try to by different types of properties, in different cities. This way if something unfortunate happens in Lancaster City we don’t have all of our eggs in one basket.

7- In Control- You are in complete control. You decide what property to buy and how to manage it. When I originally decided to invest in real estate this idea of control is what won me over. For better or worse I like to be in control. My understanding of the stock market is somewhat limited so I felt like I was at the mercy of my financial advisor when investing in stocks. That made me uncomfortable.

8 - Improving the area- Some people feel a civic duty to improve the local area. If you feel this way look no further than your nearest city. One of the most satisfying feelings is moving a new tenant into a recently rehabbed house. One house at a time we can help improve the quality of life for a city residents.

9 - Great Lending Rates- Banks are lending money at historically low prices. A well qualified investor can borrow money for around the same price of inflation. 3%-5%. This is like like borrowing money for free. Rates will continue to rise over the next decade so take advantage of these rates now. http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp

10 - Lastly, Stable Long Term Returns - Over time both stocks and real estate investments will provide high percentage returns if done prudently. One undeniable difference is the stable nature of investment properties. The instability of the market was clearly captured during the last two full decades. The 1990’s stock markets produced a favorable return of 18% while the 2000’s produced a return of only 1%. If you were heavily invested in stocks and about to retire in 90’s things probably worked out well for you. However, if you were heavily invested in stocks and about to retire in 2000’s you probably ended up working longer than you hoped. http://www.stockpickssystem.com/historical-rate-of-return/

Real Estate Investment properties are much more stable. When the housing market collapsed in 2007 rent prices actually increased. If you are relying on rent income for your retirement income you can rest assured that rent prices will not fluctuate like most other investments.